Direct controls on food prices announced
17 January 2008
The government announced new measures to directly control food prices Wednesday that went into effect immediately, the Wall Street Journal reported. The controls require large producers of dairy products, pork, mutton and eggs to obtain government approval before raising prices. Wholesalers and retailers of these products do not need permission to increase prices, though they must inform the government when prices rise above certain limits. The National Development and Reform Commission (NDRC) said in a statement that the measures were temporary and would not affect producers' business operations. The NDRC maintained that the intervention was not a "price freeze" and does not affect producers' autonomy. The controls are to be lifted once inflation, which hit an 11-year high of 6.9% in November, moderates.
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